Here's the question you clicked on:

55 members online
  • 0 replying
  • 0 viewing

manaskulk

  • 3 years ago

While calculation of the share valuation of a company should we add back cash balances to the Free Cash Flow available to equity holders calculated?

  • This Question is Closed
  1. aaronzhang
    • 3 years ago
    Best Response
    You've already chosen the best response.
    Medals 0

    You don't need to. FCF already captured the cash attributable to all the capital providers. Then take out the net debt to find the value to equity provider of the firm.

  2. Not the answer you are looking for?
    Search for more explanations.

    • Attachments:

Ask your own question

Sign Up
Find more explanations on OpenStudy
Privacy Policy